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Personal Goals and Capabilities In order to be a successful entrepreneur you must have an interest in being an entrepreneur and have a strong commitment to a business and a lot of energy.  Make your goals realistic and easily attainable.  Financial goals should specify how much money you will earn and how quickly you will pay off debts.  Non-financial goals could be to own your own business or personal satisfaction.

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Do You Have the Potential to be a Successful Entrepreneur? Everyone has the potential to become an entrepreneur. But, if you do not feel you have the potential, and you have the desire, you can strengthen your characteristics and skills if you: Read articles and books about entrepreneurs Write about individuals who overcame obstacles to achieve success Watch films about business people, athletes, or others who are achievement-oriented Practice case studies that involve goal-oriented behavior, creativity, and moderate risk-taking

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Assess Personal Interests Choose a field that interests you and will provide you with an experience you will enjoy If you enjoy: Book collectingOpen a business that sells and trades new, used and rare books SkateboardingOpen a skate shop EatingOpen a restaurant

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Assess ROI objectives Return on Investment (ROI) Investment: What it costs to make and market a product Identify the percentage return you want from the investment The profitable objective involves pricing products to obtain a certain % return on investment Your goal might be 20% ROI

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Return on Investment X  BIG #% Little # The best way to calculate ROI–or profit– is to use circle formulas. Remember these simple rules: Division line: Divide numbers below the line into the top number Multiplication line: Multiply bottom numbers

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Return on Investment X  Investment (Big #) Expected Return (%) $ Profit (Little #) $50,000 x 20% = $10,000 profit If you have $50,000 to invest and want to make a 20% return on your money, how much will you profit?

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Return on Investment X  Investment Expected Return (%) $ Profit (ROI) $10,000  $75,000 = 13.33% If you want to make $10,000 in profit from a $75,000 investment, what % return must you get?

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Return on Investment X  Investment Expected Return (%) $ Profit (ROI) $5,000  25% = $20,000 If you made a 25% return on your investment for a $5,000 profit, what was your original investment?

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Capital Capital: The buildings, equipment, tools, and other goods needed to produce a product, or the money used to purchase these items.  Businesses can have cash flow problems if they start off with too little capital  If your cash flow is inadequate, you may want to obtain more capital for your business

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Ethical Issues Code of Ethics: Behavior guidelines that describes appropriate conduct for a business or organization. Not everyone has the same ethical standards. Businesses, employees, customers, and even countries all have their own set of acceptable standards. –As a result, business owners should clearly communicate what is and is not acceptable conduct in business.

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Discussion of Ethics Discuss your views on these ethical questions:  Is it ethical for an employee to use company equipment or supplies for personal use?  Is it okay for a business person to accept gifts from clients? How about gifts from suppliers?  Your dad asks you to create a budget for yourself each month that he will pay for; school clothes, lunch money, gas money, and entertainment/miscellaneous expenses. Is it ethical to “pad” your numbers to get more money?

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Discussion of Ethics Discuss your views on this ethical question:  In order to meet the “Christmas buying season” deadline, you are forced to use a cheaper grade of screws than the engineer’s specifications require. The ones you want are delayed by a strike at the shipping docks (the screws are imported) and will not arrive on- time. It could be days or months until the strike is resolved…no one knows. The screws look exactly the same, but the load-rating is 1/10 th less than the specs. You know the engineers usually over-compensate in this area. You also know any delay in the deadline will cost your company $1,000 each day.  What do you do?  What if missing the deadline cost your company $100,000 a day?